Re: Disposition of Crown petroleum and Natural gas rights in Freehold coal Areas

The Ministry of Energy and Mines is currently considering direct award of Crown petroleum and natural gas rights within specific coal formations to the owners of freehold coal lands in British Columbia pursuant to s. 72(2) of the Petroleum and Natural Gas Act. These lands are primarily on Vancouver Island and the Kootenay region.

This opportunity to obtain Crown petroleum and natural gas rights is being provided to freehold coal owners in an effort to stimulate the development of coalbed gas. Rights will be issued in the form of a drilling licence and will be subject to the provisions of the Petroleum and Natural Gas Act Drilling Licence Regulation. The opportunity to acquire drilling licences will remain open for a five-year period, but the freehold coal owners must exercise the option on at least twenty percent of their lands each year.

The provision of this opportunity is in keeping with the Coalbed Gas Act and will be available only on freehold coal lands.
The opportunity will only be available in freehold coal lands in which the petroleum and natural gas rights are held by the Crown. The opportunity will not be extended to lands covered by Crown issued coal tenures.

Details of any drilling licence issued will be announced at the time of issuance.

For further information contact:

Colin Magee
Director, Oil & Gas Titles
Titles Division
PO Box 9326, Stn Prov Gov't
6th floor, 1810 Blanshard Street
Victoria, BC V8W 9N3
Telephone: 250-952-0335
Facsimile: 250-952-0331
Email: Colin.Magee@gems8.gov.bc.ca

Barbara Thomson
Senior Policy Advisor
Ministry of Energy and Mines
PO Box 9318, Stn Prov Gov't
4th floor, 1810 Blanshard Street
Victoria, BC V8W 9N3
Telephone: 250-952-0533
Facsimile: 250-952-0637
Email: Barbara.Thomson@gems9.gov.bc.ca

Gerald German
Executive Director
Titles Division

September 23, 2003